This report focuses on the failure of Metronet and the ability of the various public sector bodies to manage risk within the PPP framework. It concludes that at the heart of Metronet's fate lie problems of internal governance. It also highlights the key limitations facing DfT and London Underground in managing risk. The recommendations focus on improvements in governance, co-ordination, and assurance on costs as DfT and its partners seek a lasting solution to the problems of the Metronet PPP contracts. Recommendations B, C and E would require the agreement of the Mayor. These recommendations could usefully also be applied to the management of the Tube Lines contract, although Recommendation E would require Tube Lines' consent.